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What is a SWOT Analysis in Marketing?

What does SWOT Stand For?

 

 SWOT stands for: strength, weakness, opportunities and threats.

A SWOT analysis is used in marketing to analyses a company using the marketing mix. The marketing mix refers to the 4p:
  • Price (cost of a product)
  • Product (Features of the product)
  • Place/ distribution ( where the product can be found)
  • Promotion (techniques to encourage sales).

A SWOT analysis is equivalent to the balance sheet in the accounting world. It demonstrates what is happening at a single point in time.

Strength and Weaknesses

 

The strength and weakness section of a swot analysis cover the internal factors a company has. This concentrates only on what happens within your company. It can demonstrate which areas require improvement, and focuses on efficiency.    

 

Opportunities and Threats 

 

The opportunities and threats section of a swot analysis cover the external factors that effect a company. For example, due to your profit, and market analysis, you may be able to produce your product in another country, however, if you do not research it thoroughly, a political and or legal threat may effect your business even before you have started.

Discussion

 

When using a SWOT analysis, make sure you research your company based on every aspect of the marketing mix. This will cover every aspect of your business. If a SWOT analysis is written and researched effectively, it will definitely present a key focus for a company's business plan, and short and long-term goals. 



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